US HDG/CRC: Prices buoyed, lead times shrink

US hot-dipped galvanized (HDG) coil and cold rolled coil (CRC) prices both increased despite drops in lead times.

The Argus weekly US HDG price rose by $10/short ton (st) to $930/st while the CRC price jumped by $40/st to $920/st ex-works.

Repeatable HDG price offers were between $900-950/st, where steel mills have been moving prices to since Cleveland-Cliffs announced price increases a month ago.

Galvanized supply remains tight despite continuing and growing strikes by the United Auto Workers (UAW) against Ford, General Motors and Stellantis. Automotive manufacturing consumes large amounts of galvanized flat steel.

Construction demand remains strong and one buyer said low inventories could be contributing to the upward push.

Lead times fell by 1.3 weeks to 8.1 weeks, still elevated compared to most of the time period since mid-April with spot availability solidly into December.

Some mills are reportedly not quoting HDG products at certain locations because of a lack of space in their order books. Most believe this has to do with mills keeping December tons available for contracts, leaving open the possibility that holes could open up in their order books later in the year.

Repeatable CRC offers rose this week to a range of $910-950/st, with a mill reporting selling at $950/st. Demand remained quiet.

CRC lead times dropped by 2.5 weeks to 7.2 weeks, weighed down by some short mill lead times and indicating more availability in the near-term. Although they still remain somewhat extended, they have given up all of what they gained since Cliff's mid-September price announcement.